Gold Prices Edge Up, Palladium Soars, Silver Bullion Coins Rise

by Bullion Prices Staff on December 2, 2010

Gains in gold Thursday were again fueled by weakness in the U.S. dollar. The yellow metal nearly reached $1,400 an ounce before giving back most of its gains when profit-taking emerged. Silver performed slightly better than gold, but it was platinum and especially palladium that blasted off. The PGM metals, which are used in catalytic converters, were boosted by better-than expected car sales.

For the daily numbers, New York gold futures prices for February delivery added $1, or 0.1%, to close at $1,389.30 an ounce.

"Comex gold futures prices ended slightly higher Thursday, as a weaker U.S. dollar index pushed prices within an eyelash of the $1,400.00 level before backing off on some late profit-taking pressure," wrote Jim Wyckoff of Kitco News.

"Technically, February gold futures closed nearer the session low Thursday after hitting a fresh three-week high early on. Prices came within an eyelash of hitting major psychological resistance at $1,400.00 an ounce, before backing off. The gold market bulls still have the solid near-term technical advantage. A four-month-old uptrend is in place on the daily bar chart," added Wyckoff.

Gold saw an intraday low of $1,385.10 and a high of $1,399.70. Prices are up 26.7% in 2010.

Silver futures prices for March delivery advanced 15.9 cents, or 0.6%, to finish at $28.572 an ounce. Silver is up 69.6% in 2010.

March palladium rallied $31.40, or 4.3% to $763.70 an ounce. Palladium prices lead precious metals in gains this year with their impressive 86.6% run-up.

January platinum added $29.10, or 1.7%, to $1,713.10 an ounce. Platinum prices are 16.5% higher in 2010.

It was another slow moving day for United States Mint bullion coins. After a better start than last week, sales have slid since Wednesday. The 1 oz bullion American Gold Eagles were the only coins to rise with a 2,000 gain on Wednesday. On Thursday, bullion American Silver Eagles were the sole coins to advance with an increase of 42,000.

In other bullion news, another group of coins will join the American Eagle family which currently consists of gold, silver and platinum offerings. The American Eagle Palladium Bullion Coin Act passed in the House on September 29, 2010, and in the Senate on November 30, 2010. President Obama is expected to sign the Act into law within a few days. When that happens, the United States Mint will gain the authority to produce one-ounce bullion Palladium Eagles and collector versions in proof and uncirculated.

Here are the latest United States Mint bullion coin sales figures:

December 2010 US Mint Bullion Coin Sales

December 2010

Daily Gain

2010 Totals

American Buffalo Gold

Sold Out

209,000

1 oz American Gold Eagle

2,000

0

1,086,500

1/2 oz American Gold Eagle

0

0

45,000

1/4 oz American Gold Eagle

0

0

60,000

1/10 oz American Gold Eagle

0

0

385,000

American Silver Eagle

42,000

42,000

32,932,500

Figures above are in coins, not ounces of gold sold.

In earlier bullion prices, the London PM gold fixing price came to $1,389 an ounce as compared to the prior day PM fixing of $1,385.50 an ounce. Silver was fixed at $28.50 for a loss of 24 cents. In PGM metals, platinum and palladium were both fixed $25 higher. Palladium was $741 and platinum was $1,700.